Yahoo! officially reject Microsoft’s bid.
Posted by 
Ntas in Microsoft, Tech Biz |
As it has been widely reported throughout the weekend the Yahoo! board, on Monday, has officially rejected the proposed bid by Microsoft. Yahoo! states that the bid undervalues the company and therefore its not in the best interest of Yahoo! and its stockholders.
After careful evaluation, the Board believes that Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments. The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders.
But looking at the options available to Yahoo!, either to outsource their search engine ad unit to Google or revive its merger talks with AOL, many industry analysts still believe that a deal with Microsoft is a better way forward for the struggling web pioneer. My bet is that the Yahoo! board are just holding out for a better offer than the $31 per share initial offer (around the $35 per share mark). Response from Microsoft to follow.
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